Correlation Between Camtek and PDF Solutions
Can any of the company-specific risk be diversified away by investing in both Camtek and PDF Solutions at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Camtek and PDF Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camtek and PDF Solutions, you can compare the effects of market volatilities on Camtek and PDF Solutions and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Camtek with a short position of PDF Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camtek and PDF Solutions.
Diversification Opportunities for Camtek and PDF Solutions
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Camtek and PDF is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Camtek and PDF Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDF Solutions and Camtek is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Camtek are associated (or correlated) with PDF Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDF Solutions has no effect on the direction of Camtek i.e., Camtek and PDF Solutions go up and down completely randomly.
Pair Corralation between Camtek and PDF Solutions
Given the investment horizon of 90 days Camtek is expected to generate 1.12 times more return on investment than PDF Solutions. However, Camtek is 1.12 times more volatile than PDF Solutions. It trades about 0.25 of its potential returns per unit of risk. PDF Solutions is currently generating about 0.18 per unit of risk. If you would invest 6,500 in Camtek on April 29, 2025 and sell it today you would earn a total of 3,081 from holding Camtek or generate 47.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camtek vs. PDF Solutions
Performance |
| Timeline |
| Camtek |
| PDF Solutions |
Camtek and PDF Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camtek and PDF Solutions
The main advantage of trading using opposite Camtek and PDF Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camtek position performs unexpectedly, PDF Solutions can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PDF Solutions will offset losses from the drop in PDF Solutions' long position.| Camtek vs. Onto Innovation | Camtek vs. Amtech Systems | Camtek vs. Veeco Instruments | Camtek vs. Ichor Holdings |
| PDF Solutions vs. ePlus inc | PDF Solutions vs. Progress Software | PDF Solutions vs. Agilysys | PDF Solutions vs. Sapiens International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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